Hyundai to begin local manufacturing in Pakistan from January next year

HNMPL – a joint venture company between Nishat Group, Sojitz Corporation (Japan) and Millat Tractors Limited – is partnering with Hyundai Motor Company.

  • Overall investment in the manufacturing facility of Faisalabad is around $150 million-COO Hyundai
  • In the next five years, localization increases up to 45% that will eventually open new job opportunities for the people.

Hyundai

On Tuesday, the company Hyundai Nishat Motors Private Ltd (HNMPL) has announced to start local assembly of porter H100 with 20% indigenization from January next year.

The company has also opened a 3S and digital showroom in Karachi. Moreover, the company has also introduced the Hyundai loniq Hybrid car.

While talking to a source, after the inauguration of the showroom COO of HNMPL, Tatsuya Sato said, overall investment in the manufacturing facility of Faisalabad is around $150 million. The yearly production capacity of the facility is up to 15,000 units. He further added the plant has the capacity to give employment to 250 people right away.

Joint Venture

HNMPL is a joint venture between three companies i.e. Nishat group, Sojitz Corporation (Japan) and Millat Tractors Limited with Hyundai Motor Company Korea. This collaboration between all the companies, to become a leading producer, dealer and distributor of automobiles in Pakistan.

In response to the question about low localization and few job opportunities, the COO said, in the next five years localization will be increased up to 45%. Localization will eventually open new job opportunities for the people.

The Hyundai COO further added that the feasibility of the project has changed due to rupee depreciation. “One dollar was equal to Rs105 when we initiated the project as compared to the current rate of Rs156-158”.

Talking on rupee-dollar uncertainty he further says that this parity is also hitting current assemblers regardless of attaining 65% localization. “Higher indigenization in vehicles can stabilize on which we are focusing more,” he added.


Also See: Electric Vehicle Policy: 30% Cars Will Be Converted To Electricity By 2030 In Pakistan

What are your views on this? Share with us in the comments bar below.


  • Featured Content⭐

    >